A dangerous intersection in the Thornton North Urban Release Area will have to be upgraded before further development take place.
Maitland City councillors pushed through two development applications in the Thornton North precinct last week with the condition of a four-way traffic intersection at Government Road and Raymond Terrace Road.
North ward Labor councillor Robert Aitchison applauded the condition for improved infrastructure at the site of the developments.
"This is another jiggle saw [piece] in the puzzle of Thornton and Chisholm," he said.
"No construction can take place at this development until the four-way intersection at Government Road is completed. It's in black and white.
"We are not going to have another development taking place in our area ... putting the infrastructure, already lacking, in dire straits.
"Council has been asking for infrastructure in this area for years.
"This is where the infrastructure should be in ... the likes of Chisholm and Thornton area and it should be built now even before the people get there.
"Everybody knew, including the state government, that this would be a major development area."
However, Cr Aitchison said the community needed to see more action from the state government on improving infrastructure in Maitland's growing suburbs.
"There is no need for them to be standing back and shirking about why there is no infrastructure there," he said.
"We have been diddled. For years, we have been paying extensive stamp duties off to the state government and that is meant to come back in some sort of infrastructure fund."
For years, motorists and councillors have been calling out for upgrades to the busy intersection which is a renowned for accidents.
Once the four-way intersection is completed, council will issue construction certificates for the 102 lots and 22 lots allowing them to be released at Raymond Terrace Road.
However, Liberal councillor Mitchell Griffin said the intersection wouldn't provide enough relief on congestion with the addition of more residential lots in the area.
"We can fix the intersection but we still have a funnel which is headed down to Glenwood Drive and Thornton Road," Cr Griffin said at the meeting.
"It's just going to add to that traffic issue in that area."
Independent councillor Philip Penfold added he "appreciated that it wasn't the entirety of the issue but it was a big step forward".
The timeline for the intersection will be between 18 to 24 months when construction begins once a business study is completed.